Tuesday, October 5, 2010

Bernanke Tells the Truth: The United States is on the Brink of Financial Disaster

Yesterday, Federal Reserve Chairman Ben Bernanke delivered a speech before the the Annual Meeting of the Rhode Island Public Expenditure Council in Providence, Rhode Island. In the speech, he warned about the current state of the government finances. His conclusion, the situation is dire and "unsustainable".

It is remarkable that mainstream media has given this speech no coverage. I repeat, the central banker of the United States says in his own words:

Let me return to the issue of longer-term fiscal sustainability. As I have discussed, projections by the CBO and others show future budget deficits and debts rising indefinitely, and at increasing rates. To be sure, projections are to some degree only hypothetical exercises. Almost by definition, unsustainable trajectories of deficits and debts will never actually transpire, because creditors would never be willing to lend to a country in which the fiscal debt relative to the national income is rising without limit. Herbert Stein, a wise economist, once said, "If something cannot go on forever, it will stop."9One way or the other, fiscal adjustments sufficient to stabilize the federal budget will certainly occur at some point. The only real question is whether these adjustments will take place through a careful and deliberative process that weighs priorities and gives people plenty of time to adjust to changes in government programs or tax policies, or whether the needed fiscal adjustments will be a rapid and painful response to a looming or actual fiscal crisis.

This is as close as you are ever going to see a central banker admit that his country's financial situation is so dire that it could breakup at any time.

Here's more from Bernanke's remarkable speech:

The recent deep recession and the subsequent slow recovery have created severe budgetary pressures not only for many households and businesses, but for governments as well. Indeed, in the United States, governments at all levels are grappling not only with the near-term effects of economic weakness, but also with the longer-run pressures that will be generated by the need to provide health care and retirement security to an aging population. There is no way around it--meeting these challenges will require policymakers and the public to make some very difficult decisions and to accept some sacrifices. But history makes clear that countries that continually spend beyond their means suffer slower growth in incomes and living standards and are prone to greater economic and financial instability.

Now, get this, he warns that it is not only the Federal government that has financial problems, but also states and local governments:

Although state and local governments face significant fiscal challenges, my primary focus today will be the federal budget situation and its economic implications.

Does Bernanke see the tsunami hitting or what?

Then, he put things in historical perspective:

The budgetary position of the federal government has deteriorated substantially during the past two fiscal years, with the budget deficit averaging 9-1/2 percent of national income during that time. For comparison, the deficit averaged 2 percent of national income for the fiscal years 2005 to 2007, prior to the onset of the recession and financial crisis. The recent deterioration was largely the result of a sharp decline in tax revenues brought about by the recession and the subsequent slow recovery, as well as by increases in federal spending needed to alleviate the recession and stabilize the financial system. As a result of these deficits, the accumulated federal debt measured relative to national income has increased to a level not seen since the aftermath of World War II.

Then, he explains the deterioration and the problems it will create for the entire economy:

For now, the budget deficit has stabilized and, so long as the economy and financial markets continue to recover, it should narrow relative to national income over the next few years. Economic conditions provide little scope for reducing deficits significantly further over the next year or two; indeed, premature fiscal tightening could put the recovery at risk. Over the medium- and long-term, however, the story is quite different. If current policy settings are maintained, and under reasonable assumptions about economic growth, the federal budget will be on an unsustainable path in coming years, with the ratio of federal debt held by the public to national income rising at an increasing pace.2 Moreover, as the national debt grows, so will the associated interest payments, which in turn will lead to further increases in projected deficits. Expectations of large and increasing deficits in the future could inhibit current household and business spending--for example, by reducing confidence in the longer-term prospects for the economy or by increasing uncertainty about future tax burdens and government spending--and thus restrain the recovery. Concerns about the government's long-run fiscal position may also constrain the flexibility of fiscal policy to respond to current economic conditions.

Then, he tells us how powerful the negative trends are and how the aging population and Obamacare are going to make things worse:

Our fiscal challenges are especially daunting because they are mostly the product of powerful underlying trends, not short-term or temporary factors. Two of the most important driving forces are the aging of the U.S. population, the pace of which will intensify over the next couple of decades as the baby-boom generation retires, and rapidly rising health-care costs. As the health-care needs of the aging population increase, federal health-care programs are on track to be by far the biggest single source of fiscal imbalances over the longer term. Indeed, the Congressional Budget Office (CBO) projects that the ratio of federal spending for health-care programs (principally Medicare and Medicaid) to national income will double over the next 25 years, and continue to rise significantly further after that...he aging of the U.S. population will also strain Social Security, as the number of workers paying taxes into the system rises more slowly than the number of people receiving benefits. This year, there are about five individuals between the ages of 20 and 64 for each person aged 65 and older. By 2030, when most of the baby boomers will have retired, this ratio is projected to decline to around 3, and it may subsequently fall yet further as life expectancies continue to increase. Overall, the projected fiscal pressures associated with Social Security are considerably smaller than the pressures associated with federal health programs, but they still present a significant challenge to policymakers.

Then he goes back to warn that the financial mess also exists at the state and local level:

The same underlying trends affecting federal finances will also put substantial pressures on state and local budgets, as organizations like yours have helped to highlight. In Rhode Island, as in other states, the retirement of state employees, together with continuing increases in health-care costs, will cause public pension and retiree health-care obligations to become increasingly difficult to meet. Estimates of unfunded pension liabilities for the states as whole span a wide range, but some researchers put the figure as high as $2 trillion at the end of 2009.5 Estimates of states' liabilities for retiree health benefits are even more uncertain because of the difficulty of projecting medical costs decades into the future. However, one recent estimate suggests that state governments have a collective liability of almost $600 billion for retiree health benefits. These health benefits have usually been handled on a pay-as-you-go basis and therefore could impose a substantial fiscal burden in coming years as large numbers of state workers retire.

Bernanke then breaks the news that the problem is global:

It may be scant comfort, but the United States is not alone in facing fiscal challenges. The global recession has dealt a blow to the fiscal positions of most other advanced economies, and, as in the United States, their expenditures for public health care and pensions are expected to rise substantially in the coming decades as their populations age. Indeed, the population of the United States overall is younger than those of a number of European countries as well as Japan.

Bernanke then re-emphasises, the damage this will do to the overall economy:

Failing to address our unsustainable fiscal situation exposes our country to serious economic costs and risks. In the short run, as I have noted, concerns and uncertainty about exploding future deficits could make households, businesses, and investors more cautious about spending, capital investment, and hiring. In the longer term, a rising level of government debt relative to national income is likely to put upward pressure on interest rates and thus inhibit capital formation, productivity, and economic growth. Larger government deficits increase our reliance on foreign lenders, all else being equal, implying that the share of U.S. national income devoted to paying interest to foreign investors will increase over time. Income paid to foreign investors is not available for domestic consumption or investment. And an increasingly large cost of servicing a growing national debt means that the adjustments, when they come, could be sharp and disruptive. For example, large tax increases that might be imposed to cover the rising interest on the debt would slow potential growth by reducing incentives to work, save, hire, and invest.

He then states that we do not know how much time is left before all hell breaks loose:

It would be difficult to identify a specific threshold at which federal debt begins to pose more substantial costs and risks to the nation's economy. Perhaps no bright line exists; the costs and risks may grow more or less continuously as the federal debt rises. What we do know, however, is that the threat to our economy is real and growing, which should be sufficient reason for fiscal policymakers to put in place a credible plan for bringing deficits down to sustainable levels over the medium term.

From there,Bernanke goes into a bit of wishful thinking by identifying ways Congress can rein in spending and make the tax system more efficient. Good luck with all of that.

The real important part of Bernanke's speech is the first half where he warns of the financial crisis just ahead.

I am but a layman, and my grasp of complex fiscal problems are extremely limited, however I would suggest instead of bailing out corporations that are considered too big to fail, the federal government give a million dollars to each U.S. citizen. They would be able to pay down their debts, stimulate the economy by spending and who knows, maybe create jobs.

Anon #1 you are mad, that will only accelerate the collapse and spur violence. The country is not only on the verge of collapse, it is on the verge of violent revolution.

Anon #2. You are 100%. The only offset that can boost market confidence while inflation rages would be job creation in energy. Every nation needs energy to grow. May as well evolve 2 steps forward even as we take one staggering step back.

I built technology starting two years ago in anticipation of this time period. The tech would identify all needed labor in three weeks on a national basis to deploy for this work. Then the tech does the information sharing and solution making online on a scale never before seen in history.

Chairman Bernanke, I will help serve America. I have seen what you tried to do on research for offset fiscal policy. It took me a bit of time to realize you were someone that loved America. The Central Bank model can evolve, this is what Alan Greenspan was trying to describe as "The Flaw": http://ragingdebate.com/politics/feeling-upset-because-the-american-population-wont-wake-up-as-the-us-falls-apart

I hate to say it, but only pea-brained Beck University graduates think that O'bama created this economic crisis. The smart and well-educated know that this started a long, long time ago and is the work of both Republicans and Democrats, and it goes back as far back as Richard Nixon.

And to Anonymous that mentioned "pea-brained Beck University", it really goes back far beyond Nixon. It goes back to Wilson and the creation of the Fed, and includes FDR and his taking America internally off the gold standard. Nixon was really the final nail in the coffin when he reneged on the Bretton-Woods agreement, ending the gold standard internationally. But even this he was forced to do by the liberal bankrupting "Great Society" policies of Lyndon Johnson combined with the cost of Vietnam.

I think it's time people started thinking 'out of the box' and begin the shift from consumer driven excess to considerate sustainability. I also believe that as individuals we need to get plugged into what's authentic and what's not, learn to decipher the truth from the lies. It starts here: www.webofdebt.com

Create your own sustainable community/neighborhood. Introduce a community currency and begin to learn what the true value of humankind. Hint: it's got absolutely nothing to do with money.

Do not blame Obama for Americas economic crisis...the whole world had an economic crisis at the same time. It was just his suicidal tendencies that destroyed America's hope forever. Australia escaped the crisis because of its surplus saved for a rainy day and Politicians that thought the survival of our nation was a good thing. Obama saw considerable economic problems and made sure they became fatal...As his wife said, they have never been proud of America, until the day her husband got elected, (and was given permission to abort the US economy in line with his pro-choice mandate).

think back and REMEMBER - the late 1990's the FED was worried over 3 1/2% unemployment. They didn't think it was sustainable without pushing wages higher. Corporations were whinning that they were having trouble finding employees. Well the FED sure fixed that problem didn't they? Yes - to answer the question - long term we could have sustained that level of full employment in fact it should have not only been tolerated, but nurtured. And - yes - wages would have risen AS SO WELL THEY SHOULD HAVE! AND - we would have a solid middle class today if that possible future had not been aborted by our meddlesome and ever fearful FED.

Greenspan said the dot com business model and bubble was unsustainable - so then he set about to pop it. Tell me how the post dot com business model of GOOGLE was ANY different than those Greenspan poo-pooed? Or Facebook, or AMAZON, or MYSPACE - it's always was all about traffic. in other words - there was absolutely NO REASON why the FED had to pop the dot com bubble.

The total economic collapse of the USA (and world) will happen within 4 years. It is the best thing that can happen because nothing will change unless it happens. Even then they will want to continue the same game. But don't worry we will build a new world without greed, fear, hate and terror because we will have unlimited free clean energy. Man is not a highly evolved being and needs much help.

Who are you shooting with all those guns? No consequences there I guess. Back to reality....Big Government must end........The wars have been bogus since I don't know when. WW2 to bring us out of the Great D, Vietnam to get the rubber for tires on those mammoth suv's, Iraq, Afghanistan for the control of the ME Oil.5000 years of history would of told us where all this is going. It's happened thousand's of times.Hence: the word civil-iaztion, and also surburbia. Rome was not a place to live after the fall.

Now. Tell me once again that Bernanke is incompetent, or that he is an idiot. I don't think that is correct. This speech of his makes it very clear that he knows what he is doing. Therefore, what that means is that the destructive effects of his efforts are intentional.

Hey Anonymous!!...you are so right!! We will probably be neighbors, when the liberals still in denial will be sitting in their subdivision homes wondering when everything is going to be made well again by our government!!

And another comment to the ignorant Anonymous that mentioned "pea-brained Beck U". As a history buff, Beck has been very accurate with his facts - and "fact are a stubborn thing". It was Wilson, Roosevelt and LBJ that were DEVASTATING to our once Great Nation. Then came the disasters of Carter, Bush 1 and 2, and now up near the worst ever, Obama. Perhaps you should actually watch Beck and learn something. Btw, Clinton was very good by historic standards - just to share my independent analysis (you ignorant A-Hole).

The Fed needs to be abolished and Congress take money into their own hands as permitted by the Constitution. Failure of the government to properly handle matters will result in citizens taking the matter into their own hands.

Cast off your chains and prepare to fight the system, for nothing is so sweet as freedom.

Abolish the fed, federal reserve act and have congress print debtless based money. Something quite a few Presedents have been killed trying to do over the last couple of hundred years. And get the deputy Fed Chairman / Tresurer out of the candy store. Get rid of Tax exempt foundations too and maybe get rid of all of the congress too. Then look at the lobbists.

More taxes? We have an ever increasing number of people getting squeezed by fiscal obligations and debts, dwindling tax receipts for the gov't and they are considering more tax policies and absurd ways of taxing? Insanity coupled to additional taxes are going to collapse America very soon. We won't have to wait for the double dip into oblivion. The desperation to save the system is abundantly clear.

Thanks for the comments to the speech, insightful. Bernanke blames old age and retitrement for upcoming economic trouble when he, The Federal Reserve, Wall St., the wars, the Bailout, looted pension plans, overpriced real estate, easy mortgages, etc., etc. are the true culprits here. I can't believe how that guy talks, it is the language of pure trickery and propaganda!

To Anon up above. I'll be hedged, but some of us actually care about the other 300 M Americans. And I am not leaving America either. Note how I keep using the term "America" and not the government term for this piece of land-mass called the "United States".

I believe the blowback that will come is being far more underestimated and this lecture by BB was his way to at least forewarn as many as he could. Of course, gen pop doesn't really read much economic news outside of CNBC do they?

If there is no money to run federal, local and state governments, than where does all of that foreign money come from that is going to be borrowed and owed? From thin air of course. Would these be the special drawing rights granted by the Bank of International Settlements? What a crock, just create and spend your own money when needed and skip the foreign debt step.

We need to try something different, not trying to put Humpty Dumpty back together again. The Milton Bradley game we're living in is a busted flush. It ain't got it. So, what can we do? For starters, we need to give up empire and give up on our imperial rulers. Second, we need to work cooperatively with the world's powers to solve the world's problems. We can't truly develop alternative energy, for example, if the Rothschilds and Rockefellers are still hell-bent on controlling oil. "Control oil and you control the world": Henry Kissinger. No, Henry, that's the path of death and destruction, you doddering old fool. We the people--real human beings--don't need that. Or you. And last but not least we need an Emergency Monetary Act to break the stranglehold of debt-created money on our lives, at least for now. There are some serious problems looming ahead, and the same old same old just ain't gonna cut it.

This article really pisses me off. We need to end the Fed and all predatory banking NOW, including deregulation that allows Bernanke's friends to continue to bet at the CDS casinos and make other strange and dangerous financial arrangements with virtually no oversight. The real problem, excluding the looming energy crisis, is globalism, which is the rich man's free ride to excessive wealth and power. Look at all the offshoring going on versus the real necessity for these practices. Serious investors don't invest in America; they invest in China. We need to impose punitive taxes on these greedmongers and tariffs on those countries that manipulate their currencies to gain a competitive advantage over their trading partners. And we need to see globalism for what it actually is: A megalomaniac scheme for power in which power is gained through fostering interdependency through trade. Those who control the process control the world. The people gain nothing and suffer everything. As long as these issues aren't addressed, we will lose everything.

all that needs to be done is end the nanny state and stop giving cradle to grave care to everyone who wants it (only give it to those who really, really need it). Reduce alot of the lame ass pork spending promised to politicians for a vote. Reagan had it right when he said govt is not the solution its the problem.

Hey liberal basher,when your time comes to collect SS,will you refuse to take it?when you get fired from your job,I hope you will refuse all help from your Gov.When your 12 year old kid works 12 hour shifts in a coal mine and your frankenfood and water is killing you,don't look around for help,you'll see how far you will get with your moron attitude.The problem is not the Government,no matter how big,it is the unskilled labor shysters,occupying positions in our Gov.,that we need to eliminate.The cabinets were created to protect you from the corporate criminals,which are being gutted by those "privatisation"cretins.

I see not a word from him about the biggest expenditure, the despicable, completely worthless US military and their illegal, immoral wars based on lies, the wonderful military that stood down on 911. Cut them down to size, getting rid of the world-wide military empire, and put them where they'll do some good on the southern border and the problem is half solved.

It is interesting where several people spontaneously said "don't blame Obama" when no one was (plants?). I think we all know he and his policies are simply the nail in the coffin. Obama is Bush squared in his policies and it is pretty unlikely McCain would have been much different. Only Ron Paul could have decreased the direness of our financial situation and he was called "crazy"

1) Why this wasn't reported in the mainstream media is clear. The mainstream media's job is to promote consumer confidence, since that's what they feel keeps the ship afloat.

2) I believe you made an erroneous assumption that Obamacare was to blame for rising healthcare costs. What was cited was Medicaid and Medicare, not the new programs Obama put into place.

As far as I can tell, all Obamacare did was *force* a larger number of individuals and families to purchase health insurance, thereby reducing the burden of unpaid healthcare costs that are currently being eaten by the system. It was a bill crafted by the medical industrial complex to cover shortfalls -- not from government funds, but from individual funds.

I personally think this coup is deceptive at best and draconian at worst. But let's be clear — this is as far away from government-run socialized healthcare as you can get. It is not a coup for the government, but a coup for insurance companies and the medical-pharmaceutical industry.

I've lived in Canada where they have socialized medicine. It is a terrible burden on the government, and an endless sprawl as new ares of "medicine" (social work, counseling, etc) all lobby to be covered by the government. But from the citizen's point of view, it is great. Yes you pay slightly higher taxes, but *nothing* like you pay for health insurance. And you never really have to worry about going broke and devastating your family's financial future because of some unanticipated disease.

Base money on real productivity, human labor measured in time, and the unproductive financial mob can no longer steal from the working people who actually create the true wealth. All money, interest-free, created and backed by the labor of individuals willing to actually work.

It's time to climb out of the P.I.T. (of profit, interest & taxes). www.monetaryreform.com/MR/betterWay.htm

WHY WOULD ANYONE BELEIVE BEN IN THE 1ST PLACEAFTER ALL HE WAS INVOLVED WITH THE BUSH ADMINSTRATION AND ALL THEIR SCHEMES TO TOTALLYCOLLASPE THE U.S. ECONOMY AND THEY ARE LAUGHINGBEHIND THE AMERICAN PEOPLES BACKS TO THIS DAYSTILL SPREADING DOOM AMD GLOOM WHEN THEY HAVE ALL THE MONEY AND CONTROL KNOWING THAT THE BOMB WAS DROPPED AND THERES NOTHING ANYONE CAN DO.WORLD ORDER WAS AND IS THEIR DIRECTION AND STILL IS THEIR AGENDA.GOD DOES'NT TEMPT US SATIN DOES.PEOPLE WERE TEMPTED AND DECEIVED ANYONE WHOM LISTENS TO THESE PEOPLE WHOM CALL THE KETTLE BLACK WHEN THEY THEMSELFS STOOD BY AND DID NOTHING AND ARE STILL TALKING BULL SH...T!!!ANYONE WITH EYES CAN SEE AS LONG AS THEY CAN CONVINCE PEOPLE OF THE LIES AND DECEPTIONS THE EASIER THE TAKE OVER WILL BE FOR THEM.

4 things can get us out of this mess: 1. We could eradicate the national debt within 2 years by introducing a Tobin Tax on any traded financial instrument, from FOREX to derivatives, options, futures, OTC, stocks, etc. FOREX alone is a $3 Trillion DAILY market. Slap a 1% tax on it. 2. Banish the Federal Reserve Bank....no more Central Banks printing our money and loaning it to the Government. 4. Slam a lawsuit on the interests that control the FED for mismanaging our economy, and creating this controlled financial Armageddon.

Anonymous, a while back said something to the effect,"This is America and not the United States."Just where the H to you come off calling yourself an "American"? You are a bunch of states and from what I see, not very united!Last time I looked at the map of N.A. there was a big chunk of real estate to your north and some more to the south. All part of North America I believe!ps to the gun toter....you'll need good teeth to chew them thar' bullets when the canned food runs out. Same for the guy with lots of gold in his pouch. Not much good when there's nothing to buy.

Hmmm. People seem to think that the United States will suddenly come to an end. No it won't. As long as money is involved, serpents slither but the good in most of us will prevail. Doesn't good always conquer evil? At least that's what we've been told. I tend to agree otherwise we would have been gone centuries ago.We've all be guilty of greed and we will be forced to stop. That's the good thing. Yes there will be suffering but for a good cause.If this New World Order is in the making, too late to turn back now so you better find something good about it. And as far as buying guns, ammo and food, how long do you plan on doing that? Only until you run out. Then what? Any ideas after that? You just prolonged the inevitable.

One Big Ponzi scheme !!!!! They have no idea what to do the only thing saving us is this is happening globally. So every country is Printing MONEY and trying to calm the public. IT IS A FALSE HOPE !!!!! WHOS FAULT ??? WHO CARES !!! BE PREPARED !!!!!!!!!!!!!!!!!

Many credible experts say the economy will crash this year? Who are they? The same people that said real estate will come back in 2 years? That was 3 years ago! If we had "credible" experts, than how did we end up this way? The comfort as we know now, will come to an end, but very slowly. Even the rich will be affected, because as someone just said, "Not much good, when there's nothing to buy". AND 2012 will come and go just like the new millenium did. Contrary to belief, Rome did not fall in one day.One thing is for certain: Never underestimate what people will or will not do!

Remember that awful book and movie "The Road"?Where did those 2 think they were going? The wife had the best solution! As Brer Rabbit say's, "Can't run away from trouble. Aint no place that far". So for the time being, just enjoy what you have now. Educate yourself with information you search for, not for what you've been told. Be rightous in a productive way. If you do that, there will be no surprises. Pleasant or not. Only have what you need, not what you want. Help others when you can. That's the way life is supposed to be. Soon come.

All of this mess started back in ~1914 with President Woodrow Wilson... Currency was taken off the gold standard and is practically worthless today... debt based fiat money has worth as long as the people believe it does...

What was started over 90 years ago is finally coming to it's demise in our day. The debt back currency system is not meant to be ongoing but lasts as long as debt outpaces currency in circulation...

Where is money from? Banks do not have fiat notes in safes backing up the currency, the fiat money itself is backed on loans of peoples signatures, such as car and home loans... It is a domino effect going on from the real estate crash a few years ago, increasing debt service against the GNP, increased taxes and such... It is not going away but it is going to get worse and continue down this path until the house of cards fall, and they are falling now as we speak... It is not a matter of 'if', but 'when', and that 'when' is today!

Jeez. Too many people that think guns are their savior or don't even think about guns. People, you need to have three things to survive this: Shelter, Food and Security. Security being the most important since with out it you will not have the other two for long.

Every household in one of Union States here in North American should have made arrangements for this collapse. Lord knows you have enough warning. You don't need an armory of guns to protect yourself.

You need three guns: A shotgun with about 100 rounds of ammo (12 or 20 gauge), a pistol (9mm or 357mag or something else) and 500 rounds of ammo, and a 22LR rifle with 1000 rounds of ammo. This is for your security. You can spend as little ias $600 or as much as $2500 without getting extravigant. Buy it. Learn to use it.

At the http://thesurvivalpodcast.com you will find many tips on storing and sustainable food sources. There are even tips for apartment and urban dwellers. They stress store what you eat / eat what you store.

As far as shelter goes, you have to stay dry and you have to stay warm. It takes energy to stay warm. There are usually ample sources around but you have to know how to use them! If you think about how to attain and maintain this, you're half way there.

Just ask yourself what you would do if there was no way to buy food at the grocery store or get gas as the station? What would you do?

To the ANONYMOUS who wrote this: Now. Tell me once again that Bernanke is incompetent, or that he is an idiot. I don't think that is correct. This speech of his makes it very clear that he knows what he is doing. Therefore, what that means is that the destructive effects of his efforts are intentional.

Now. Tell me once again that Bernanke is incompetent, or that he is an idiot. I don't think that is correct. This speech of his makes it very clear that he knows what he is doing. Therefore, what that means is that the destructive effects of his efforts are intentional."

Everyone please ponder this statement above for it is so true.

Ben Bernanke is an employee of a Private organization created to serve the benefit of Bankers. If he gives a speech such as this, it's about as clear of a warning for all the peons to scatter as they'll ever get.

I'm not a tin foil hat type, but damn... I sure get the feeling something is about to go down.

Federal governments around the world scared their middle-class in bailing out the Stocks Exchange, and are now placing the burden of paying off the deficits on the middle-calls, again, via higher taxes and loss of government [retirement] programs.

I read,with interest,all of the comments listed. some of them were well written,others had no clue. while we are headed for some tough times in the very near future,we will make it! One person suggested Doing some research. For most of you, this would be very wise indeed. Because you haven`t got a clue what has gone on for the last 90 yrs.or what is going on as we speak. the info is out there. Find it and read.

I like the idea of a mandaotry alternative minimum tax for companies with revenues > $100MM on all corporations domociled in the US or "principally" domiciled here to catch the tax evaders that reincorporate offshore just to avoid taxes. Corporations have billions of dollarsi in cash stock piled offshore because of tax havens. Make them pay their fair share and take the burden off the consumer, for once. That and restructure the inheritance tax. Can't pass it all along to your heirs? Too bad. Giving them a leg up is one thing, but it is ridiculous how much influence folks like the Mars, Wal-Mart and Cargill founders have had on inheritence taxes in this country.

Why do you hate freedom and love hiding taxes from the people that really pay them?

Do away with corporate taxes altogether. The citizens are, in fact, the ones that are paying these taxes. Let them see how much they really are being forced to spend to fund the govt, and pretending that "evil" corporations are really paying these.

"Fair share"?? Just what exactly is someone else's "fair share" of what someone else has earned??

Swanky bernanke BLAMETH GAME speaketh out of both sides of the LIAR'S blathering mouthYEAR NUMBER 10 Afghan warIraq WarWAR WAR HERE A WAR THERE A WAR EVERYWHERE A WAR WAR =BANKRUPTCY FOR THE MASSES2+2=4

Banker Makes speech and no mentions of the gazillions paid out to Bankers CEO's, their associated cronies and other company directors and higher end staff. Not even a mention of the dam bonuses they paid themselves after being bailed out with public money as bonuses even when they lost billions at their institution,in the 70 replies I have read here.

So here is the solution: Never steal small amounts that gets you in jail. Learn form the financial gurus, steal big time and you get applauded and definitely you will not get jailed, so ofget the guns, the ammo and the beer.

When the puppet masters allow the puppets to speak, the puppets have worn out their usefulness as "Useful Idiots", and are now relegated to the role of "Useful Scapegoats", whose necks are free to be stretched when the peasants revolt!

When the elite'$ mouth piece start telling it like it is..watch out! The poop soup is about to hit the fan, duck and cover, cause our goose is cooked and we're about to be served chicken-sh-h-h-h...oh what the hell, whether it's 2010or 2012 our number$ been weighed in the balanceand found wanting.

People don't pay attention until they have to. This is because human nature is such that people will always extrapolate the recent past into the future. Things are OK so things will continue to be OK. Even when given irrefutable facts to the contrary.

Same reason why most sell at the bottom and buy at the tops of the stock market. Gotta love the herd. Of course in their defense buying stocks when there's blood in the streets is akin to stepping in front of a speeding bus. Similarly, the social ostracism of sticking your neck out and seeming a fool by claiming the end is nigh, even when it is, is akin to stepping in front of the bus too. People would rather be accepted members of the herd than deal with reality. From the looks of the comments in here I'm sure you've all dealt with friends and relatives who think your a kook. Even if your right they'll tell you it was a lucky guess and still think your a fool. I am, at this moment, wearing my lucky dunce cap. I was right about the stock market in 2008, the real estate bust, Obama being as much a neo-con as Bush, and lots more but my friends STILL mock me and my views :)

AL CAPONE GAVE US THE BEST PIECE OF ADVICE EARLY ON WHEN HE WARNED US TO STAY AWAY FROM THE "STOCK MARKET" IT'S THE BIGGEST SCAM HE HAS EVER WITNESSED!... AND LETS FACE IT... HE WAS A BIT OF AN AN AUTHORITY ON THE SUBJECT!